Suche
Mein Konto
Iowa Court Allows Bitcoin ATM Operators to Keep Fraudulent Funds!
Iowa Supreme Court Rules: Bitcoin ATM Operator Allowed to Keep Money from Cyber Fraud Victims Despite Attempt to Recover.
Iowa Court Allows Bitcoin ATM Operators to Keep Fraudulent Funds!
The Iowa Supreme Court has ruled that Bitcoin ATM operators are not required to return money to cybercrime victims. This controversial decision involves two Iowa customers who were caught up in fraud schemes. According to reports from IT Boltwise The two Iowans were contacted in July 2023 and February 2024 by scammers posing as members of the “Geek Squad” or people with incriminating information.
In both cases, the perpetrators asked the victims to purchase Bitcoins at a Bitcoin ATM in Linn County and send them to digital wallets they controlled. Each victim lost more than $14,000. After the incidents, those affected contacted law enforcement, but they only confiscated the cash, while the purchased Bitcoins were lost.
Court ruling and reasons
The central question that the court had to clarify was who was entitled to the money seized during the investigation. Amazingly, the court overturned a lower ruling and ruled that the operator Bitcoin Depot could keep the money. This was done based on the notion that users have the responsibility to be the owners of the wallets to which they send Bitcoins. According to Judge Dana Oxley, Bitcoin Depot did nothing wrong in this case and is entitled to keep the funds.
But the decision raises additional questions, particularly in light of the lawsuit filed by the Iowa Attorney General's Office, which accuses Bitcoin Depot and CoinFlip of causing Iowans to lose more than $20 million to scams through the company's ATMs.
Litigation and lawyers
The case, titled “In the Matter of Property Seized for Forfeiture from Bitcoin Depot Operating, LLC v. Carrie Carlson,” involves an appeal of a district court decision. In this lower court it was ruled that the seized funds should be returned to Bitcoin Depot. Bitcoin Depot's attorney, Matthew A. McGuire, argued that the district court erred by viewing the contract between the operator and the customer as voidable due to third-party pressure.
The oral hearing before the Supreme Court took place on April 16, 2025. Lawyers on both sides presented their arguments in hopes of reaching a decision in their clients' favor. The disputes surrounding this topic show how complicated the legal framework is for cryptocurrencies and their use in digital payment machines. Further information about the litigation is available on the Iowa Courts website, which provides all relevant documents and pleadings, at Iowa Courts.